KUALA LUMPUR (Dec 18): Reservoir Link Energy Bhd has bagged a contract worth US$11.5 million (approximately RM46.3 million) for the provision of perforation and wash for abandonment and decommissioning of Chinguetti and Banda Fields, offshore Mauritania.
Reservoir Link said the contract, which its wholly-owned subsidiary Reservoir Link Sdn Bhd (RLSB) has received a Letter of Award (LOA) from PC Mauritania 1 Pty Ltd (PCMPL) for, is estimated to be completed in nine months from Nov 28, 2020.
PCMPL is the appointed operator for the production of Chinguetti field offshore Mauritania.
The scope of works for the contract is to provide perforation, annulus wash and cementing assurance services including but not limited to these specialised services such as circulation tunnel creation through perforation, wash technology and cement placement across single annulus, according to a filing to Bursa Malaysia today.
Additionally, RLSB is to provide an irrevocable and unconditional first call bank guarantee in the sum of US$575,347 to be issued by a commercial bank operating and licensed in Malaysia.
Reservoir Link said the contract is expected to contribute positively towards the company’s earnings during the contract duration.
“We are excited to be awarded this contract once again. Over the years, we have accumulated experiences in operating regionally, leveraging on our expertise across the full range of our services, continuously supporting PC Mauritania 1 Pty Ltd’s ongoing operations,” said its executive director Thien Chiet Chai in a separate statement today.
“As an integrated entity, our experienced team is capable of delivering within expectations with our solutions in well perforation, wash and cement. With the continuous replenishment of our contracts, we are optimistic of our growth momentum moving forward,” Thien added.
At noon break, Reservoir Link’s shares were up 3.5 sen or 7.22% at 52 sen, valuing the company at RM148.2 million. The stock, which was listed on the ACE Market in July this year, has risen as much as 26.8% from its initial public offering price of 41 sen.